UWM initiates 100 bps discount for conventional rate-and-term refis 

Temporary incentive aims to help broker partners create their own ‘refi boom,’ the company stated

United Wholesale Mortgage (UWM) announced Wednesday that it’s allowing its broker partners to offer a temporary discount of 100 basis points (bps) for conventional rate-and-term refinances. The discount is valid on new loan locks through March 29. 

It’s not the first time that the Pontiac, Michigan-based lender has encouraged borrowers to refinance their loans. In December, the lender offered a discounted rate on some government loans that is valid until Jan. 31. 

The new initiative, dubbed Refi 100, “aims to help independent mortgage brokers who work with UWM create their own refinance boom and grow their book of business,” the company said in a news release. 

Brokers, however, must follow some rules. New originations must be at least 365 days older than a previous UWM note to qualify for the refi transaction. But there’s no seasoning requirement on loans originated by other companies. 

Refinancing is currently not an attractive option for most borrowers who obtained their loans during the Covid-19 years when mortgage rates were in the 2% to 4% range. Nevertheless, after a notable decline, refinance transactions are anticipated to rebound in 2024.

According to the Mortgage Bankers Association (MBA) latest estimate, refinancing volumes are expected to be at $471 million in 2024, a 50% increase from 2023. Meanwhile, purchase originations are estimated at $1.5 trillion in 2024, up from $1.3 billion in 2023. 

At HousingWire’s Mortgage Rates Center, Optimal Blue’s data showed 30-year fixed, conforming mortgage rates at 6.599% on Tuesday, down from 6.686% one week prior. More relief may come with the Federal Reserve’s decision to hold its short-term policy interest rate steady at 5.25% to 5.5% on Wednesday. 

Top wholesale lenders have launched new initiatives to boost production this year. 

Rocket Pro TPO, the wholesale arm of Rocket Mortgage, will continue to provide credit reports at no cost for brokers when closing loans through Rocket, due to the recognition that fees are more expensive this year. It also struck a deal with Mobility Market Intelligence (MMI) to slash the price of the data service. 

And the company made updates to its ONE+ program – a conventional 1% down home loan option that launched in May 2023. Rocket estimates it could bring a 16% increase in client eligibility.

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